Customs have issued Business Brief 23/2003 (VAT: Invoicing Changes). This
explains the changes being made to the requirements for VAT invoicing, which come
into force on 1 January 2004. The main changes are:
- an additional requirement to show the unit price on a VAT invoice;
- changes to the sterling requirements - fewer items will have to be shown in sterling;
- an increase in the upper limit for simplified retailer's invoices from £100 to
£250 including VAT;
- removal of the need to obtain Customs' approval to self-bill, provided the conditions
for self-billing outlined in VAT regulations and VAT Notices are met;
- changes to the arrangements for electronic invoicing.
There will no longer be a mandatory requirement for VAT invoices to show the type
of supply or the amount of VAT charged at each separate rate, but businesses may
continue to show these data elements on their invoices if they want to.
However, it is understood that Customs are looking into introducing flexibility
regarding the requirement to disclose 'unit prices'. This is important for businesses
such as professional services firms where it is difficult to define unit price.
If the supply cannot be broken down into countable elements, then the total tax
exclusive price will be the unit price.
Customs have stated that they will apply a light touch for a transitional period
of twelve months, so invoices in the old format (i.e. without a unit price) will
continue to be acceptable until the 31 December 2004. This will also give businesses
time to adjust to the revised procedures for self-billing and electronic transmission
and storage of VAT invoices.
If you require further information please contact us on 0121 778 4299.
This newsletter is designed to keep readers abreast of
current developments. No liability is accepted for errors, omissions or opinions
it contains or for any reliance placed on this newsletter. This newsletter is intended
for general guidance only. No responsibility for loss occasioned to any person
acting or refraining from action as a result of any material in this publication
can be accepted by the authors or publishers. On any specific matter, reference
should be made to the appropriate advisor.
© Copyright 2003 VATease Ltd
